How to Make Consistent Profits

How to Make Consistent Profits
Trading Futures Part II
Direct Access Electronic Trading The issue of direct access is an important one and it becomes more important the more short term your trading is. The market can change from a state of seeming paralysis to one of shocking volatility and hustle in a flash. The length of time it takes between you deciding to consist of an procession and the order actually being in the market is obviously important. When I earliest started trading I used a broker and was dismayed that my fills would regularly be so far from the price the forex market was trading when I first entered my order. When first time I visited the trading floor, I revealed why. First time I called in an order, first my concession (! ) broker would check my tally review, then he would call a phone booth on the floor, the phone broker on the floor would then write the line by oneself and pass it on ( by phone ) to a booth next to the appropriate pit, at that booth my order would be written down again and then signaled to a broker in the pit to be executed. As you can imagine this would take quite a long time, even longer of course if the market was very active, as this would mean that the broker in the coalmine would be vitally occupied to take dewy orders. Compare this to my judgment of trading as a pit trader. In the depression I was in the heart of the market and could monitor every single order as it was executed ( there was no postponement in my price feed! ). To initiate a trade, whether it was to buy or sell at the market, or join the advance or the offer, all I had to do was open my abyss. You can start to see the huge advantage that trading on the flag gave me over off concrete traders; and that doesn’t holding into consideration the truth that my tussle trip costs fell by 96 %. Straightaway the floor no longer exists, not in Europe at least, so why talk about the advantages of pit trading? Well the level playing field is now open to all, but very few takings ice of it. Trading with an electronic trading platform is just so the same as trading in the pit, except I can sit down, it is much quieter and there are no crude jokes double time around. I can trade with the comprehension of a mouse; my setup shoots to the exchange, enters in the market and appears back on my screen before I have time to blink. I think the advantages of direct access trading are clear and any futures trader low-key using a phone broker should move to direct access, they will also find their commissions are less ( around £8 for private client traders ). The subsequently question that happens is why trade futures? That is an important consideration given that there are a variety of alternatives vying for your trading capital ( spread betting, CFDs and options ), but in my opinion, futures are the apart alternative ( no pun premeditated ) for successful short term trading.

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